Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


ETS Losses Confirmed - Groser Has Explaining To Do

ETS Losses Confirmed - Groser Has Explaining To Do

Sustainability Council Media Statement – 7 November 2012


New documents confirm the ETS has been a net loser for the taxpayer and that the government faces a big deficit in its carbon accounts, contrary to the Climate Change Minister’s denial.

Documents also show that Tim Groser and two other ministers are so keen to play down this inconvenient truth that they requested officials to consider whether the ETS accounts could be changed so that such losses would not form part of the government’s financial statements in future.

Parliament’s Finance and Expenditure Committee sought updated figures on the ETS as part of its consideration of a Bill that would all but gut the scheme. These updated estimates were requested following a Sustainability Council submission that urged the committee to obtain them.

Documents presented to the committee estimate the ETS will be 76 million tonnes of carbon dioxide equivalent in deficit by the end of this year – the total for the first five years of its operation.

These documents also show a credit of 22 million tonnes for the same period resulting from obligations under the Kyoto Protocol. After allowing for this credit, officials report that there is an overall deficit on the government’s carbon accounts of 54 million tonnes for the period from 2008 to 2012.

That is essentially the same figure the Sustainability Council first exposed on September 13 and which the Climate Change Minister then denied on Morning Report. Rather than it being the Sustainability Council that has “got it completely wrong” as he claimed, it is Tim Groser who has some explaining to do.

He has also to explain what the basis is for ministers asking officials to report on “whether ETS units should still be valued in the Crown’s financial statements”. Translated, that means ministers are asking whether local carbon credits given away by the government as corporate welfare and compensation need to be shown as a cost to the taxpayer.

The government has systematically suppressed detail on the ETS accounts so that this very complex scheme is harder still to monitor. It is breathtaking that ministers would ask officials to consider not valuing something that when given away means the recipient no longer needs to pay tax. Such gifts must be recorded as costs to the taxpayer, in line with generally agreed accounting practice.

The government’s current debt of 54 million tonnes of carbon is worth $325 million at the price of $6/tonne that officials used to value it in the estimates presented to Parliament. The debt is $1.3 billion at the $25/tonne price the government uses to consider policy options under the ETS. As this deficit will be paid off at future prices, it is analytically more appropriate to use a forecast future price when assessing its value, and this could be much higher than $25/t.

Carbon budgeting is the route to serious emission reductions. This is the approach the UK is following and it still involves pricing emissions but the emphasis is on working out practical options for cutting carbon and then setting limits on the total volume of emissions for the country over a particular period. It truly caps emissions and maximises the opportunities for funds to be spent in New Zealand.


For full media statement and references see:
http://www.sustainabilitynz.org/docs/ETSLossesConfirmedNovember2012.pdf


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Gordon Campbell: On The Govt’s Token Plans For Cyber-Security

Basically, the world is divided into two types of people: those who think the Panama Papers illustrate the bad shit that some people do, and those who think the Panama Papers illustrate what needs to be done to make sure no-one else discovers the shit – good or bad – that they’re doing. More>>

ALSO:

Gordon Campbell: On Pharmac’s Grudging Concession To Reality

Is this any way to run a health system… whereby terminally ill patients are forced into public demonstrations before the government (and its funding agency Pharmac) will grudgingly provide the money for life-saving treatments freely available and publically funded in Australia for the best part of a year? More>>

ALSO:

Labour: Healthy Homes Bill Passes First Reading

Some of New Zealand’s most vulnerable children and families are on their way towards safer living conditions with the passing of the first reading of the Healthy Homes Guarantee Bill in Parliament last night, Leader of the Opposition Andrew Little says. More>>

ALSO:

Werewolf Satire: Home, And A Way

The one thing even more popular than an Auckland house is offering advice on how to afford an Auckland house. So, on the grounds it can’t be worse than some of the stuff that’s out there, here’s my three cents* worth. [*Up 50% since 2013!] More>>

ALSO:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news